A student loan is a type of loan designed for the graduates and undergraduates that will help them pay their students tuition fees and other associated fees like stationery, tuition, hostel, and others. It differs from other types of loans completely with the lower rate of interest and the repayment schedule may differ from other loans.
If you have some issue with your student loan servicer and you are not able to resolve it then, rather going to lawyer and court you can always contact a student loan ombudsman. student loan Ombudsman is a kind of mediator between the borrower and the loan servicer that helps to resolve the problem you are having in regards to the loan.
Table of content
- What is a student loan ombudsman?
- Types of issues an ombudsman can resolve?
- What an ombudsman does not do
- Steps to be taken care before submitting a request
- How to contact an ombudsman?
- Resolving issues
What is a student loan ombudsman?
Student loan ombudsman is an unbiased and confidential body that helps to solve the issue that you have with your loan and the loan servicer. If you are into default by mistake or wrongfully detected as default due to incorrect balance an ombudsman can intervene.
As student loan ombudsman is a neutral contact, that justifies they do not advocate of anyone in a dispute. Whenever they have to resolve any issue between the borrower and the loan servicer they are not on loan servicer side either. The ombudsman enters the conflict from a neutral standpoint. They evaluate the data and enable both borrowers and the loan servicer to come to a resolution.
An ombudsman cant abolishes decisions but obviously can create an argument to present to the lender or collection agency. The ombudsman can help the decision-makers make a justified informed ruling that will surely help to give you relief.
Types of issues an ombudsman can resolve?
A student loan ombudsman can assist with many issues. But student loan ombudsman cant take decisions about loan forgiveness or repayment plans. And if you have private student loans, you have to work with an ombudsman specializing in the private loan. For that federal student, loan ombudsman cannot help you, unfortunately. In order to find a private loan ombudsman, you can visit their official website and know more detail on the consumer financial protection bureau.
Some of the issues that can be solved by the ombudsman are:
Loan balance discrepancies.
Interest rate and default charges.
Various repayment options
What an ombudsman does not do
They don’t advocate for either side and hence remain neutral.
They don’t have the authority to reserve any prior decisions about your federal student loans.
NSLP’s ombudsman cannot answer any question on behalf of other parties including guarantors, lenders or government agencies. Also about alternative or private student loans.
Steps to be taken care before submitting a request
Reaching out to the federal student aid student loan ombudsman, this step is taken when you have exhausted all other options. Also must try working directly with your loan servicer, credit bureau, or collection agency on your own. The federal student aid created a resolution that can be used to help manage problems. Can also check off all the appropriate steps fr the problem to ensure that you checked for all the possible options before reaching to an ombudsman. Some of the common problems are:
Incorrect loan balance
This often happens if your account balance has the wrong calculation, you must contact your loan servicer directly. If you have the bank statements or payment configuration emails then those proof can be submitted to get out of such incorrect loan balance.
Rather you can be more careful next time and whenever you contact the loan servicer, record the date, time and name of the person you are speaking too. Also, you can save the original copy of the payments done receipt, or mails for the issue you are going through. If you have done the payments online you can also save the copies of the configuration notifications. Next time whenever you get into such a problem you will have something on your behalf to show the bank.
Worried about your college tuition? Find the best student loan for you
Inaccurate credit report
If you ever feel that your loan servicer has sent incorrect information regarding your loan to the credit bureaus that are affecting your credit score you can dispute the report anytime with a valid point.
For the correction of your credit report, you can also contact Experian, Equifax or TransUnion and documentation of your accurate loan balance and payments. And you can monitor your credit report and check for errors for completely free.
How to contact an ombudsman?
If you have tried all the ways getting out of the problem and exhausted all avenues and still not able to resolve the issue then you can contact the student loan ombudsman online or through the mail. If you are using an online form you will need your
Detail loan information
Social security number
Detail about the problem
You need all those above information so they can locate your federal student loan account.
You can also send a written request if you are choosing this option with all the information in the letter. And you can send the request and documentation to the below address:
The U.S Department of Education
FSA Ombudsman Group
P.O. box 1843
Monticello, KY 42633
Your complaint will be reviewed within 45 business days. After the view, you will be contacted by email or letter outlining what further can be done.
When reaching out to the ombudsman, you must make sure that the documentation about your situation is ready and also be able to pinpoint the exact reason. That resolution you want in return.
When you are having issues with your student loans, it’s very easy to feel helpless when you are battling big loan servicers. But after trying everything you can still think and fix the problem with the student loan ombudsman as an essential resource to find a resolution.
For more information on how to handle student loan disputes, you can learn about defense repayment rules. How they can help you with every prospect.